DUBLIN: The Irish operations of British betting services group Ladbrokes managed to grow revenues by 3% last year, on a reported basis, despite seeing the amount of money spent in its outlets fall as the size of its retail estate declined. In 2015, Ladbrokes Ireland emerged from examinership with 143 shops; 53 fewer than it had before entering the process. As of the end of 2016, the group operated 141 shops in the Republic. Despite that, last year saw Ladbrokes Ireland’s net revenue grow by 3% to £38.7m (€44.6m). However, in its annual results presentation, published yesterday, the group said overall money staked on bets by Irish punters fell by 5%, on a constant currency basis, reflecting the reduced shop estate. This, Ladbrokes said, led to a 6% fall in net revenue in Ireland on a constant currency basis.
In its first set of results since its £2.7bn merger with Coral, Ladbrokes yesterday posted an 11% increase in annual earnings to just over £2.35bn. Underlying operating profits were up by 22% at £264.3m and the company increased its cost savings estimate — from £65m to £100m — from the merger. However, on a reported basis, Ladbrokes-Coral clocked up post-tax losses of just over £204m, after taking a £200m hit from punter-friendly sports results and varied costs related to the merger. The increased cost savings estimate — to be realised by 2019 — was enough to prompt a number of analysts to upgrade their outlooks on the company. Group chief executive Jim Mullen called it “a very successful” start for the enlarged group, adding both companies entered the merger with good momentum and delivered a strong full-year financial performance. “The merger was the start of a journey. While we face some short-term uncertainty… the scale, talent, and agility we have in this business represent real strengths going forward. We intend to use these strengths to establish Ladbrokes-Coral as both the leading, and the best, betting and gaming business,” he added. Ladbrokes-Coral’s share price fell by around 2% yesterday on the back of the results.
